drove BTC to $28,000, the delay in the decision caused the prices to pull back and erased all the gains. Moreover, Kaiko Research’s report suggested that the initial ruling affected the Cumulative Volume Delta .The CVD compares buying and selling volume while identifying an asset’s micro and macro price action overview. The cryptocurrency market data provider also noted that the CVD flipped positive on exchanges including Binance and Coinbase.
“In a sign of just how muted trade volume has been the past few months, the Grayscale ruling was hardly able to boost BTC’s volumes. August 29 ranked just 504 out of 973 days in terms of BTC volume.”As per activity in the derivates market, Kaiko noted that Open Interest decreased between 29 and 31 August. Open Interest is the value of the futures contracts open at the end of a trading day.
When the Open Interest increases, it means that liquidity in the contract increases. But when it decreases, it implies the closure of many contracts in the market. Therefore, the decrease suggests that liquidity has been reduced, and there was no strength behind BTC’s trajectory.At press time, Bitcoin’s funding rate was very mild, at 0.002%. Before now, there was an ebb and flow direction of the funding rate, indicating skepticism around BTC’s movement.
The state of the funding rate at press time meant that there were still doubts about an upward Bitcoin movement.